Featured Product

    ESAs Defer Final Two Phases of Margin Rules for OTC Derivatives

    May 04, 2020

    ESAs have published the final report on joint draft regulatory technical standards to amend the Delegated Regulation on risk mitigation techniques for non-centrally cleared over-the-counter (OTC) derivatives (bilateral margin requirements). In response to the COVID-19 outbreak, this amendment is intended to incorporate a one-year deferral of the two implementation phases of the bilateral margin requirements. ESAs have developed these regulatory standards under Article 11(15) of the European Market Infrastructure Regulation or EMIR (EU No 648/2012). The amending draft technical standards were developed to facilitate further an internationally coordinated approach on adapting the implementation of the bilateral margin requirements.

    The one-year extension would result in covered counterparties with an aggregate average notional amount of non-centrally cleared derivatives above EUR 50 billion becoming subject to the requirement to exchange initial margin from September 01, 2021. Additionally, covered counterparties with an aggregate average notional amount of non-centrally cleared derivatives above EUR 8 billion will become subject to the requirement from September 01, 2022. This final report provides explanation on the draft technical standards amending the current Delegated Regulation on bilateral margin requirements with respect to the treatment of physically settled foreign-exchange forward and swap contracts, intragroup contracts, equity option contracts, and the implementation of the initial margin requirements. 

    A first version of these draft regulatory technical standards had been submitted to EC and published on December 05, 2019. However, in response to the COVID-19 outbreak, that version of the final report and the draft standards has now been updated to take into account the agreement from the BCBS and IOSCO to defer, by one year, the deadline for completing the final two implementation phases of the bilateral margin requirements. This updated version of the final report on the draft regulatory standards on bilateral margin requirements thus replaces the version submitted to EC in December 2019. ESAs have submitted this second version of the draft technical standards, presented in the Annex to final report, to EC for endorsement in the form of a Commission Delegated Regulation. Following the endorsement, the standards will then be subject to non-objection by the European Parliament and the Council.

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, Insurance, Regulatory Technical Standards, OTC Derivatives, EMIR, Implementation Timeline, Margin Requirements, COVID-19, Basel III, ESAs, BCBS, IOSCO

    Featured Experts
    Related Articles
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    News

    EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis

    EBA published a statement on resolution planning in light of the COVID-19 pandemic.

    July 09, 2020 WebPage Regulatory News
    News

    ECB Guideline on Materiality Threshold for Credit Obligations Past Due

    ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.

    July 08, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act

    FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.

    July 08, 2020 WebPage Regulatory News
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5458